Am I understanding the foreclosure timeline correctly?

[Sweetpea3829]

We have a multifamily home in RI, the loan was discharged in a 2007 Chapt 7. We paid and stayed right up until Citimortgage refused to modify the loan last summer. We stopped paying in August of 2009, hoping they would modify after. They sent the NOD in October and then transferred the loan to LBPS. Months went by and we didn't hear anything from LBPS. In the process of transferring the loan, they sent a sheet over with the amounts owed and we disputed those amounts, knowing that they would not be able to proceed with any foreclosure action until that dispute was resolved (we knew this because the form they sent said so).

In the meantime, my husband took a new job out of state and we moved. We began to seek out financing options to purchase a home where we live now. There's a WHOLE story within a story surrounding that, but the bottom line is that we are in the middle of applying for a USDA Direct loan and do not anticipate being declined for a number of reasons. Except...the closing for this home MUST take place before a foreclosure takes place at our home in RI.

In February, I reached out to LBPS seeking information on a modification. We would actually really like to keep the property as it is an income property...and we can keep it if they modify the loan. Shortly after, they resolved the dispute on the amounts owed and on February 20th, they sent a letter to us notifying us of the default and the request for accelerated payment (IE pay in full by 3/27 or else).

I THOUGHT that the NOD had already been sent, but if I'm understanding this correctly, this notice is a NOD, correct?

So here's the thing...last week, I called LBPS to follow up on the modification package that I had sent in the first week of March and had not yet heard anything on. They informed me that they hadn't received a complete package and that I would need to send all kinds of stuff again. I inquired where we were in the foreclosure process and how soon would it be before they set a sale date. They told me that a date could be set at any time...it could be the very next day or it could be months.

But if I'm understanding the timeline correctly, they actually can't set a sale date for another 90 days, is this correct? 90 days from 3/27? Or am I mistaken?

If they CAN set a date at any point, can anybody give me any suggestions on how to stall, just a little longer? LBPS told me that the modification process could take up to two months...and the USDA process could also take another two months to finally close. I canNOT let the property in RI foreclose until after the USDA loan closes. And, like I mentioned, I really would like to modify that loan in RI and keep the property. At least for now anyways.

Any thoughts, suggestions and ideas?

Thanks for any help!

[ryan]

I'm not in RI, so this is only some info:
RI is a non-judicial state for FCs. so timeline is shorter anyway. It may be since you appear to have new 'Servicer', that the NOD that matters is the new one you received. It appears that normal process would involve setting date, and advertising for 3 weeks etc. before the actual sale. So, maybe what the person on the phone meant was they could "SET' a date at any time, but that DATE ITSELF would likely be 2 months+ out in time. (just due to the preliminary work that must be done in readying for a Sheriffs Sale.)

Also, I am not sure where you are getting the 90 days from?

I would do more research on this and if you have an attorney inquire with him/her as well. Sometimes the fact you are close to getting a loan mod approved can delay or stop a FC, but not always.

[Sweetpea3829]

That 90 Days was from the notice of default to the notice of sale. I saw that on the sticky thread regarding Foreclosure timelines. I'm not sure if that 90 days applies is RI or what have you.

I can tell you this...our BK7 was kickstarted in 2006 by a second property that we had purchased late 2005 (an additional multifamily). The story is long, but the short end of it is that from the day we closed on that property for the next 9 months, we had three separate evictions, extensive damage, loss of rent, legal fees, etc etc and we ultimately lost the property. We stopped paying on that property in, I want to say June of 2006, maybe July. We filed the bankruptcy later that year and it was discharged in April of 2007. The bankruptcy was to rid us of the lien that we knew would be placed on our first property from the deficiency on the second property. In other words...we knew that the second property was going to foreclose and it would sell for much less than we owed (the market was starting to tank back in 2007). We knew that we would be liable for that deficiency so we filed the 7 to protect our assets.

The second property was officially sold at foreclosure late in 2007, although I distinctly remember receiving a notice stating it would be sold at foreclosure in February of 2007.

I'm basically just trying to figure out if LBPS is anywhere close to actually foreclosing on this property in RI...and if so...what can I do to stall it until the mod is in place and/or the USDA loan closes.